Exophase suggested that AMD is no longer capable of manufacturing mid to high end systems. Ergo not capable of investing in R&D for such processor
No, he didn't. Despite the cuts AMD still has a very respectable R&D muscle yes, they would be able to develop the kind of product you are suggesting. There is no new tech anyway, just put existing parts together. What Exophase and I suggested is that AMD no longer has the capabilities to
bring to the market such processor.
AMD financial resources are already near minimum levels and they simply cannot afford to risk money in a risky project like the one you are suggesting. One wrong move and they are done for. And if AMD cannot bear the risk, AMD can't build the project.
There is a big difference between seeing an immensely flawed product/concept like Bulldozer, Netburst, Zune and seeing a flaw in the fine tuning of a product line like the one you are suggesting. It's easy to see a big flaw in a concept or in execution like the three examples I mentioned. You can safely bet that this was seen internally but management for some reason (some rational like TTM or strategic calculus, others not so rational like pride, hubris or sheer stupidity) proceeded with the venture.
In the same tune, it's easy to see that APU is a dog for margins, but once AMD management gave the marketing guys Bulldozer and decided to go APU you can bet that there was a marketing team full of dedicated people running every simulation possible and gathering all the marketing data they could in order to make the most money out of the thing, and if that team decided that it wasn't worth to go to huge APUs, then you can almost always bet that the right answer is to not to go huge APU.
Just look at the last two paragraphs. The scope in the former case is huge, and so is the number of variables that can impact the thing. You from your armchair have a very good chance to hit some of the most significant variables (as they are out in the environment) and you may be right in your judgement. For fine tuning, the scope is far smaller, but you wouldn't have most of the critical parameters like R&D costs, projected performance of the product, TAM, target ROI, COGS and OEM input because they are internal.
You are essentially saying that you can do better than AMD marketing guys just because *you* are interested in such a product.It's easier to guess management than to guess the guy running the model.